Pinky Tow Co. wants to purchase a new towing truck that they can paint pink to attract customers. The cost of the truck and paint job is $50,000. The net cash flows resulting from the investment are as follows: Year 1: $6,000; Year 2: $20,000; Year 3: $40,000; Year 4: $12,000; Year 5: $950. The companys cost of capital is 18.34%. Compute the NPV of the project.

Answers:

$15.37

$28,950.00

($15.37)

$78,950.00